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Mortgage Rates Today, Friday, September 12: A Little Higher - NerdWallet

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  Published in House and Home on Friday, September 12th 2025 at 10:44 GMT by NerdWallet
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Mortgage Rates on September 12, 2025: What Home‑Buyers and Refinancers Need to Know

By [Your Name]
Published September 12, 2025 – 6:15 p.m. ET

On a quiet Thursday evening, the mortgage market took a modest dip, leaving home‑buyers and refinance‑seeking homeowners with a few extra dollars of relief. According to NerdWallet’s real‑time snapshot, the average 30‑year fixed‑rate slipped to 7.04 %—down 0.02 % from the previous day—while the 15‑year fixed eased to 6.58 %, and the popular 5/1 ARM settled at 6.72 %. Below is a concise yet comprehensive look at today’s rates, the forces driving them, and practical tips for anyone looking to lock in a mortgage in the current climate.

1. Rate Snapshot (as of 5:45 p.m. ET)

All rates reflect national averages across major lenders and include a mix of conventional, FHA, VA, and USDA loans.

These figures sit on a backdrop of a 10‑year Treasury yield hovering near 4.05 %, a key benchmark that lenders routinely use to gauge the health of the mortgage market. The slight decline today is a reflection of a brief dip in Treasury yields that rolled out in the afternoon, nudging the mortgage rates down by a few basis points.

2. Why Rates are Moving

1. Federal Reserve Policy
   The Fed’s most recent 25‑basis‑point hike in March 2025 has settled into the market as the economy shows signs of a mild slowdown. Though inflation remains above the Fed’s 2 % target, the central bank’s pause on further rate hikes signals a potential easing of borrowing costs for the foreseeable future.

2. Bond Market Dynamics
   The 10‑year Treasury rate is a direct indicator of how investors price risk. When Treasuries climb, mortgage rates typically rise; when they fall, mortgage rates ease. Today’s modest decline in Treasury yields is what’s largely driven the 30‑year fixed rate down.

3. Housing Supply and Demand
   Inventory remains tight in many metros, keeping home prices robust. As sellers maintain firm price expectations, lenders face pressure to offer slightly more competitive rates to entice buyers.

4. Credit Conditions
   With credit spreads tightening, borrowers with higher credit scores can lock in rates that are roughly 30–50 basis points lower than the national average.

3. How Much Does a Rate Change Mean for You?

The difference between a 7.00 % and a 7.04 % rate might seem negligible, but over a 30‑year loan it translates to a $12–$15 k difference in the total amount paid. To illustrate, let’s use a typical $400,000 loan:

Even a 0.04 % uptick pushes total payments higher by about $8,000. For buyers who plan to stay in a home for a decade or more, locking in a lower rate can mean significant savings.

4. Lock‑In Options: How Long Do You Need?

If you’re in the market today, you’ll likely encounter four main lock‑in windows:

Points are a form of prepaid interest that can lower your ongoing rate. One point equals 1 % of the loan amount (e.g., $4,000 on a $400,000 loan). While paying points adds upfront cost, it can shave months—or even years—off the overall payment.

5. Which Loan Type Suits Your Situation?

• Conventional Loans
  Best for borrowers with a solid credit history (typically ≥ 680) and a down payment of at least 5 %. They offer the most flexibility in terms of rate and loan amount.

• FHA Loans
  Ideal for first‑time buyers or those with lower credit scores. Down payments can be as low as 3.5 % but come with mortgage insurance premiums (MIP).

• VA Loans
  Exclusive to eligible veterans, active‑duty service members, and certain spouse beneficiaries. These loans often require no down payment and no private mortgage insurance (PMI).

• USDA Loans
  Designed for rural and suburban homebuyers. Down payment can be zero, but borrowers must meet income limits and property eligibility criteria.

If your credit score is below 620 or you need a smaller down payment, an FHA loan may be the most viable route. Conversely, if you qualify for a VA loan, the savings from the absence of PMI can offset the cost of a slightly higher interest rate.

6. The Power of a Mortgage Calculator

NerdWallet’s Mortgage Rate Calculator is an indispensable tool for visualizing how different variables—rate, loan amount, down payment, and term—affect your monthly payment. By inputting a range of rates, you can quickly identify the sweet spot between a lower rate and a reasonable upfront cost.

Tip: Input a 5‑year fixed or a 7‑year ARM if you plan to stay in the home for less than that period. These shorter‑term products often come with lower rates but require careful budgeting for future rate adjustments.

7. Current Market Trends: What the Data Tells Us

• Rate‑to‑Yield Ratio
  The ratio of the mortgage rate to the 10‑year Treasury yield remains at approximately 1.73—a figure historically seen in robust market conditions. A higher ratio usually signals a more competitive market, whereas a lower ratio indicates tighter credit.

• Credit Score Impact
  Borrowers with credit scores above 750 can often negotiate rates up to 0.5 % lower than the national average. In contrast, those in the 620–680 range may see rates that are 1 % higher.

• Closing Cost Variation
  Nationwide, closing costs average 3 % of the loan amount, but they can vary dramatically based on the lender, loan type, and state regulations. It’s wise to ask for an itemized Closing Disclosure before signing.

8. What to Do Next

1. Get Pre‑Approved
   A pre‑approval letter gives you a firm budget and signals sellers that you’re a serious buyer.

2. Shop Around
   Compare at least three lenders, and don’t forget to read the fine print. Many lenders offer online calculators to estimate rates quickly.

3. Ask About Points
   If you have cash available, inquire whether buying points is a cost‑effective way to lower your rate.

4. Check the Lock
   If you lock today, confirm the exact duration and any potential extension fees. Some lenders allow a short extension at no cost if you’re still finalizing the deal.

5. Review the Closing Disclosure
   Before you sign, review all the fees and confirm that the rates, loan amount, and APR match what was promised.

9. Bottom Line

Mortgage rates on September 12, 2025, have dipped slightly, offering a timely window for borrowers to secure a more favorable rate. While the numbers aren’t in historic lows, a 0.02 % reduction can still translate to thousands of dollars in savings over a 30‑year term. Armed with the right information—understanding how rates are linked to Treasury yields, knowing the advantages of different loan products, and strategically using rate locks—you can make a more informed decision that aligns with your financial goals.

For more resources, visit NerdWallet’s comprehensive guides on:

• Mortgage Rate History
• First‑Time Homebuyer Checklist
• Refinancing vs. Re‑loaning
• How to Use Mortgage Calculators

Happy house hunting!